Performance at Month End

Merrill Lynch Br. SmallerCo Tst PLC
14 April 2005


MERRILL LYNCH BRITISH SMALLER COMPANIES TRUST plc

All information is at 31 March 2005 and unaudited.

Performance at month end is calculated on a capital only basis

                                      One          Three           One            Three          Five
                                      Month        Months          Year           Years          Years

Net asset value                       -1.9%         9.1%           20.8%          25.3%          -14.3%
Share price                            3.4%        13.5%           25.9%          36.5%           -7.3%
FTSE Small Cap Index (ex IC's)        -1.2%         5.2%            8.8%          14.0%          -12.6%

Sources:  Merrill Lynch Investment Managers and Datastream.

At month end
Net asset value:                                 276.19p
Share price:                                     236.75p
Discount to NAV:                                   14.3%
Net yield:                                          1.9%

Total assets:                                    £154.4m
Gearing:                                           10.6%
Ordinary shares in issue:                        50,563,523



During the month the Company bought back 600,000 shares.

Ten Largest Sector
Weightings                                                                                             % of Total Assets

Support Services                                                                                                    12.7
Software & Computer Services                                                                                         9.5
Media & Entertainment                                                                                                8.8
Leisure & Hotels                                                                                                     6.9
Mining                                                                                                               6.3
Construction & Building Materials                                                                                    5.6
Oil & Gas                                                                                                            5.0
General Retailers                                                                                                    4.8
Speciality & Other Finance                                                                                           4.7
Electronic & Electrical Equipment                                                                                    4.4
                                                                                                                    ----
Total                                                                                                               68.7
                                                                                                                    ----




Ten Largest Equity Investments

Company                                                                                                % of Total Assets

Aveva Group                                                                                                          2.4
Brewin Dolphin                                                                                                       2.3
Consolidated Minerals                                                                                                2.2
Dechra Pharmaceuticals                                                                                               2.2
BSS Group                                                                                                            2.1
Blacks Leisure Group                                                                                                 2.0
Parkdean Holidays                                                                                                    1.9
Holidaybreak                                                                                                         1.7
Chaucer Holdings                                                                                                     1.7
Dicom Group                                                                                                          1.5
                                                                                                                    ----
Total                                                                                                               20.0
                                                                                                                    ----



Commenting on the markets, Mike Prentis, representing the Investment Manager
noted:



March was a disappointing month with the NAV falling and underperforming the
Company's benchmark index. This followed six months of good gains for smaller
companies; we had expected some profit taking for a few months.



Most of the Company's larger holdings were steady with good gains from Dechra
Pharmaceuticals and Xaar, each following good results with positive outlook
statements.



Poor share price performances came from Lloyds underwriter SVB following
continuing disappointing news on past year reserves; Centurion Electronics as a
result of weaker demand from their retail arm; Adulis Resources whose main
exploration well was dry; and LA Fitness, where there were suggestions that the
expected public to private bid may be at a lower level than previously expected.
Additionally, the share price of Gooch & Housego fell due to profit taking after
a strong run; trading remains good. None of these holdings are particularly
large, but together they contributed significantly to the underperformance
during the month.



New holdings in the month included SIG, the leading supplier of insulation
materials, and Ultimate Leisure, which owns and operates freehold bars and clubs
and which has a good record. We do not see Ultimate Leisure as being as
susceptible to weaker consumer spending as some retailers, given its focus on
younger adults.


By contrast, complete disposals were made of the Company's holdings in various
other consumer related stocks including Alba and Topps Tiles. Two construction
related holdings, Marshalls and Mowlem, were also sold, the former due to a
cautious outlook and likely lower growth ahead, and the latter due to concerns
that we may not yet have seen the last of provisions against difficult
contracts. The balance of the Company's holding in Asia Energy was also sold, at
more than ten times original cost.



The Trust's results for the year ended 28 February will be published on 21
April.



Latest information is available by typing www.mlim.co.uk/its on the internet,
'MLIMINDEX' on Reuters, 'MLIM' on Bloomberg or '8800' on Topic 3 (ICV terminal).



14 April 2005


                      This information is provided by RNS
            The company news service from the London Stock Exchange